Fannie Mae-No Politics (FNMA)

[navycmdr]

Suddenly, Senate Democrats Seem Pretty Interested in GSE Reform


December 18, 2019 - [e-mail]



Democratic members of the Senate Banking Committee Tuesday delivered a letter to Federal Housing Finance Agency Director Mark Calabria and Treasury Secretary Steven Mnuchin seeking more information on the administration’s plan to release Fannie Mae and Freddie Mac from conservatorship.

The correspondence, signed by all 12 Democratic members of the committee, appeared to be an attempt to reassert some legislative control over housing finance reform, even as Calabria and Mnuchin seem increasingly committed to administrative action. Democrats also sought to highlight the mission and statutory responsibilities of Fannie Mae and Freddie Mac.

The bulk of the letter consisted of a list of 22 questions for the director and secretary. The senators asked for a detailed timeline for ending the conservatorships and a list of benchmarks that the GSEs must meet. They also asked what reforms are necessary prior to the enterprises’ release, and how they will impact the charters.

Several of the questions addressed the preferred stock purchase agreements that underlie Treasury’s support for the GSEs and form the basis of the net worth sweep. For full details, see the new edition of Inside Mortgage Finance, available online Thursday afternoon.